The survey found that 93% of first-time buyers who bought a starter home completed at least one renovation project. 60% spent more than £2,500 on home improvements, and nearly two-thirds factored renovation costs into their deposit savings. More than a fifth borrowed extra on their mortgage to fund improvements after moving in.
Carlo Pileggi, head of mortgages at Nationwide, said that for many first-time buyers, opting for a cheaper property that needs work is a deliberate and savvy choice rather than a compromise. He added that by taking on a renovation, buyers can get onto the property ladder in their preferred location and add value to their home.
41% of first-time buyers who bought a fixer-upper did so to afford a home in their preferred location. Matt Barker, a first-time buyer and Nationwide employee, purchased a two-bedroom terrace in Chester for £185,000 with a 5% deposit in 2023. According to Daily Mail - Money, Barker estimated he would have had to pay £45,000 more for a move-in ready home in the same area. He described the property as having been a rental for 15 to 30 years and said he modernised it room by room over two years.